IIA IIA-CIA-PART2 Online Practice Questions and Exam Preparation

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 621:

  Which of the following statements accurately describes the Standards requirement for retaining internal audit records?

  A. Retention requirements for internal audit records should be compliant with ones set for external audit records.
  B. Retention requirements should take into account the medium in which internal audit records are stored.
  C. Retention requirements should be set by the chief audit executive and aligned with the organization's policies and procedures.
  D. Retention requirements should set a minimum period of time for records storage and the process of archiving documents.
  C. Retention requirements should be set by the chief audit executive and aligned with the organization's policies and procedures.

• Question 622:

  A large investment organization hired a chief risk officer (CRO) to be responsible for the organization's risk management processes. Which of the following people should prioritize risks to be used for the audit plan?

  A. Operational management, because they are responsible for the day-to-day management of the operational risks.
  B. The CRO, because he is responsible for coordinating and project managing risk activities based on his specialized skills and knowledge.
  C. The chief audit executive, although he is not accountable for risk management in the organization.
  D. The CEO, because he has ultimate responsibility for ensuring that risks are managed within the agreed tolerance limits set by the board.
  C. The chief audit executive, although he is not accountable for risk management in the organization.

• Question 623:

  The chief audit executive (CAE) determined that based on management's oral response, the action taken regarding an audit observation was sufficient when weighted against the relative importance of the audit recommendation. Which of the following is the most appropriate step for the internal auditor to take next?

  A. Initiate a follow-up audit to ensure that action has really been taken.
  B. Follow-up with management until a written response is obtained.
  C. Escalate the issue to the board and get their position on the issue.
  D. Note in the permanent file that follow-up needs to be performed as part of the next engagement.
  D. Note in the permanent file that follow-up needs to be performed as part of the next engagement.

• Question 624:

  Which of the following risks assumes an absence of compensating controls in the area being reviewed?

  A. Control risk.
  B. Detection risk.
  C. Inherent risk.
  D. Sampling risk.
  C. Inherent risk.

• Question 625:

  Which of the following is the most important determinant of the objectives and scope of assurance engagements?

  A. The organizational chart, business objectives, and policies and procedures of the area to be reviewed.
  B. The most recent risk assessment conducted by management of the area to be reviewed.
  C. The requests of operational and senior management throughout the organization.
  D. The preliminary risk assessment performed by internal auditors planning the engagement.
  A. The organizational chart, business objectives, and policies and procedures of the area to be reviewed.

• Question 626:

  The internal audit activity has requested that new vendor information be summarized once per week in a single report, and that all invoices each week for these vendors be automatically flagged in the invoice processing system. Which of the following computerized audit techniques is the internal audit activity most likely applying?

  A. Enabling continuous auditing.
  B. Employing generalized audit software.
  C. Facilitating electronic workpapers.
  D. Using machine learning.
  A. Enabling continuous auditing.

• Question 627:

  Which of the following audit procedures is most suitable for verifying that all sales transactions have been recorded?

  A. Observation.
  B. Tracing.
  C. Re-computation.
  D. Vouching.
  B. Tracing.

• Question 628:

  Which of the following is the most appropriate approach for the internal audit activity to follow up on management action plans?

  A. Create a tracking system for follow up
  B. Ensure that follow-up activities are performed at least weekly.
  C. Delegate follow-up activities to qualified administrative staff within the business unit
  D. Ensure that follow-up activities are performed by the most senior auditor on staff
  A. Create a tracking system for follow up

• Question 629:

  Which of the following measures immediate short-term liquidity?

  A. Current ratio.
  B. Profit margin.
  C. Quick ratio.
  D. Times interest earned.
  C. Quick ratio.

• Question 630:

  An internal auditor used a risk and control matrix to prepare a work program for testing a software release. During the engagement planning stage, he tested the design of the release procedure as a key control and concluded that the control was not designed well. During the performance stage, he tested the operation of this control and concluded that it was implemented as designed. Which of the following statements is true regarding this scenario?

  A. The test of the control design should have occurred at the performance stage.
  B. The test of the operating effectiveness of the control was not necessary.
  C. A risk and control matrix is not appropriate for this type of engagement.
  D. The test of the operating effectiveness of the control should have occurred at the planning stage.
  B. The test of the operating effectiveness of the control was not necessary.